In a big vote of confidence for the maturity of the online streaming market, OTT measurement and analytics firm Conviva has raked in $40 million in a new funding round from new and existing investors.
The funds will support the development of platform capabilities, applications and integrations with other data-driven systems and services; accelerate sales and marketing efforts; and allow Conviva to further expand internationally, especially in Asia and Latin America, where it has limited presence. Conviva’s enterprise-class big data processing platform and sensor network collects, cleanses and computes hundreds of video viewing metrics and metadata values from every second of consumers’ video viewing sessions in real-time.
Traditional linear TV consumption has suffered with the rise of OTT, with an estimated loss of 800,000 pay-TV subscribers in the US in Q1 2017. In fact, Netflix has surpassed the 50 million subscriber mark, making it larger in terms of its base than the entire cable segment in the US. Although Netflix subscriptions tend to be individual, while pay-TV subscriptions are household-level (and 95% of households have a traditional TV subscription), it’s still a significant headline statistic.
As people are shifting to open internet viewing across all devices, the need for new tools to measure and analyse content consumption is crucial for such services to be seen as a true replacement for traditional TV. Conviva is reaping the benefit of the trend: Its software sensors are deployed across 2.5 billion devices globally and measure over 1 billion streaming minutes per day of premium video content for publishers such as HBO, Sky, Turner and more.
In the past year, the company saw 80% growth in viewing minutes and expects that growth to exceed 150% in 2017.
“We have consistently been growing faster than the overall market and have developed a strong, sustainable business model,” said Hui Zhang, co-founder and CEO of Conviva. “We are excited to close this round of funding so we can accelerate our new product offerings and our global market expansion, extending our technology and market leadership in OTT measurement and analytics.”
The round included new investor Future Fund with participation from existing investors New Enterprise Associates, Foundation Capital and Time Warner Investments.
“NEA has been part of the Conviva team from day one and we are excited to see the company grow and achieve such great success,” said Pete Sonsini, general partner and head of enterprise investing at NEA. “As the way people consume content continues to evolve, we believe Conviva will be a foundational element of measurement and analytics for the next generation of TV.”